Recently, Zacks.com users have been paying close attention to Celestica (CLS). This makes it worthwhile to examine what the stock has in store.
Celestica (CLS) delivered a record Q4, with EPS of $1.89 and 44% YoY revenue growth, driven by CCS services up 64%. Despite raising 2026 revenue and EPS guidance, CLS shares dropped on a surprise CAPEX jump to $1B (6% of revenue) and flat FCF. I see the recent correction as an attractive entry, supported by robust AI infrastructure demand, accelerating growth, and improving valuation metrics.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
CLS beat Q4 estimates as AI-driven demand lifted revenues 44% and CCS growth 64%, while management raised 2026 revenues and EPS guidance.
CLS benefits from hyperscaler partnerships with GOOG and META, with the latter two's outsized capex fueling the former's Connectivity & Cloud Solutions growth prospects. Thanks to the promising industry trends and the seemingly robust hyperscaler demand, the ODM company has guided a drastically higher FY2026 capex of $1B (+397.5% YoY). These lend credibility to CLS' ambitious FY2026 guidance—$17B revenue (+37.2% YoY) and $8.75 adj EPS (+44.6% YoY), with further growth likely in 2027.
CLS beats Q4 earnings and revenue estimates as sales jump 44%, CCS demand surges, and management lifts 2026 revenue, margin and EPS outlook.
Celestica (CLS) came out with quarterly earnings of $1.89 per share, beating the Zacks Consensus Estimate of $1.74 per share. This compares to earnings of $1.11 per share a year ago.
Earnings season reminds me a lot of traveling.
Celestica Inc. is upgraded to Buy ahead of Q4 2025 earnings despite stretched valuation, driven by robust AI infrastructure demand confirmed by numerous recent developments. CLS is expected to deliver double earnings beats and upbeat FY2026 guidance, supported by strong hyperscale data center growth. Despite a recent dip, CLS stock trades at elevated valuation multiples, with a forward P/E above 20 and sector/historical premiums.
Celestica is upgraded to bullish ahead of Q4 CY25 earnings, driven by robust AI networking demand and hyperscaler capex strength. CLS is projected to deliver 27% revenue growth in CY25 and 31% in CY26, with management consistently raising guidance and outperforming initial projections. Despite recent speculation about Google Cloud shifting server assembly orders, I expect management to reaffirm strong client relationships and clarify sustained program status.
In the most recent trading session, Celestica (CLS) closed at $290.93, indicating a -6.08% shift from the previous trading day.
Celestica Inc. stock is down 7% Thursday. CLS shares are dropping on a report Alphabet is looking for additional TPU server suppliers. This is an indication of greater TPU demand, which will benefit Celestica going forward.